Are you looking for an ERP system for your business?
Selecting an enterprise resource planning solution is one of the most significant decisions your company can make. Get the ERP platform right, and operations flow smoother than ever before. Pick the wrong one, and you can expect a lot of money going down the drain.
Here’s the deal:
The ERP market is already crowded with players. Oracle NetSuite, SAP, Microsoft Dynamics, Workday, and other vendors all claim to have the perfect solution for your company.
But which one actually delivers results?
We simplify the process by reviewing Oracle NetSuite vs competitors, and the right option becomes very clear.
What you’ll learn:
- Why Oracle NetSuite Leads Cloud ERP
- NetSuite Competitors: Top 3 Vendors You Should Know
- The Most Important Differences
- Choosing the Correct ERP for Your Business
Why Oracle NetSuite Leads Cloud ERP
Oracle NetSuite is the cloud ERP leader for a reason.
Hosting more than 40,000 customers in 219 countries, NetSuite has become one of the most adopted cloud ERP solutions in the world. It is no small achievement for a market as competitive as the ERP landscape is.
But that is only half of the story.
What sets NetSuite apart is the cloud-native infrastructure. Unlike legacy systems patched for cloud functionality, NetSuite was purpose-built as a SaaS application. This equates to shorter update cycles, more effortless scalability, and no hardware maintenance costs.
When you match them against netsuite competitors, its all-in-one approach becomes unique. NetSuite has financials, CRM, inventory, e-commerce, and more, all in one platform. Other vendors require more third-party add-ons or complex integration to achieve similar functionality.
- Less complicated ERP systems
- Avoid third-party headaches
- Better data visibility and reporting
The Top NetSuite Competitors
Before you make any ERP decisions, it is always good to understand your options and the competition. These are the main vendors going up against Oracle NetSuite:
Microsoft Dynamics 365
Microsoft Dynamics holds the largest ERP market share at 24.43%, which makes it NetSuite’s biggest competitor. The Dynamics 365 platform can also integrate seamlessly with other Microsoft products like Office 365 and Teams.
Strengths:
- Familiar user interface if you’re in the Microsoft ecosystem
- Robust business intelligence
- Flexible deployment options (cloud or hybrid)
Weaknesses:
- Can require heavy customization
- Multiple modules make the platform more complex
- Integrations increase the costs
SAP S/4HANA
SAP has been the standard in the ERP market for enterprises for years. Their S/4HANA platform is designed for bigger businesses with more complex global operations.
Strengths:
- Industry-leading for manufacturing and supply chain
- Rich industry-specific functionality
- Analytical features are superior
Weaknesses:
- Very high learning curve
- Total cost of ownership skyrockets
- Takes up to two years to fully implement
Workday
Workday has become a leader in human capital management and financial planning. It is a favorite among service-based companies.
Strengths:
- Human resources and payroll are among the best
- Simple and intuitive user interface
- Excellent financial planning tools
Weaknesses:
- Not designed for manufacturing functions
- Not the right fit for product-based businesses
- Limited customization abilities
Differences That Really Matter
When comparing Oracle NetSuite and the competition, be sure to compare the things that make a difference.
Implementation Duration
NetSuite’s average implementation time is between three and six months. This is much shorter than SAP or Microsoft Dynamics projects, which often take up to 18 months or longer for large-scale enterprise implementations.
Why should you care?
The faster an ERP implementation can go, the quicker you will get a return on your investment. You spend one month waiting for the ERP system to go live; it takes a month to gain the efficiencies it promises.
TCO
The total cost of ownership of an ERP solution is more than the initial licensing fees. The real money is spent on:
- Consulting and implementation
- Customization and development
- Training and change management
- Upkeep, maintenance, and system upgrades
The beauty of NetSuite’s subscription model is that many of those costs are rolled into the monthly subscription price. For on-premise competitors, those TCO costs are the hidden expenses that continue to balloon long after the implementation is done.
Scaling
Growing organizations need ERP systems that scale with them. And with NetSuite, scaling is already built into the cloud-native architecture. On the other hand, more traditional ERPs might not have those capabilities in place.
Add more users, expand to new countries, or increase the number of transactions your company processes, and a cloud-based platform like NetSuite will scale accordingly.
Manual ERP systems will usually meet scalability barriers and will require more investments in hardware and infrastructure.
How ERP Implementations Really Go
Here’s a fact not many people talk about:
In Gartner research, 70% of ERP implementations fail to meet their objectives. That’s a whopping number when these projects usually cost millions.
But why are ERP implementations failing?
- Lack of planning or unrealistic timelines
- Lack of change management
- Not enough user training
- Choosing the wrong vendor
Vendor choice is one of the most critical factors. If you choose a platform that does not cater to your business processes or that does not fit into your business, then the system will be a source of friction since day 1.
Not only that, but this friction just multiplies and multiplies until the point that using an ERP solution is a burden more than a benefit.
That is why reviewing Oracle NetSuite vs competitors before is so important. Take your time to do the groundwork now so that you can save significant headaches in the future.
How to Select the Right ERP
Choosing between NetSuite and its competitors is relatively easy. Simply answer the following questions and decide which ERP is best for your organization.
What is the primary business model?
If you are a product-based organization with inventory and supply chain operations, you might find that NetSuite’s unified platform is the most efficient for you. Service-based companies might lean more toward Workday. Heavy manufacturers might be better served by SAP.
What is the IT situation?
Companies with limited IT resources and a smaller team can benefit more from a managed cloud-based platform like NetSuite. Larger organizations with bigger IT departments might have the capability to handle more complex implementations and configurations like the ones Microsoft Dynamics offer.
What is the growth trajectory?
High-growth companies need ERP systems that can scale as seamlessly as they do. For that reason, NetSuite’s cloud-native design outperforms retrofitted legacy systems that try to reach cloud parity.
What is the budget?
Be honest with the total cost of ownership, not just initial licensing. Think of the costs of implementation, customization, and ongoing maintenance, alongside training and change management.
Let’s Summarize Everything
Comparing Oracle NetSuite vs other vendors is not something you can say is the best and end it there.
As you can see, each ERP solution has strengths and benefits that match up with different business requirements and profiles.
NetSuite dominates for mid-market companies who are looking for a unified cloud platform with the best implementation times. Microsoft Dynamics works best with organizations that are part of the Microsoft ecosystem. SAP is the ERP to go for if you are a large enterprise with complex manufacturing operations.
In conclusion
- Take your time to compare ERP solutions on your shortlist
- Look at total cost of ownership and not just the licensing
- Factor in how much time it will take to implement and its complexity
- Don’t forget to factor in scalability over the long term
The right ERP can help transform business operations. The wrong one is a burden you will live for the next ten years or so.
For that reason, make sure you take the time to understand all the options on the table. The decision you make will have an impact on the future of your business.